NEW YORK, NY--(Marketwire - July 7, 2008) - New Oriental Energy & Chemical Corp. (NASDAQ: NOEC), a specialty chemical and emerging alternative fuel manufacturer in
The People's Republic of China (PRC), said today that it greatly welcomed
the joint announcement of China's State Administration of Taxation and The
Ministry of Finance to lower the value-added tax (VAT) on dimethyl ether
(DME) from 17% to 13%. According to the Company, this reflects strong
governmental interest in boosting the usage of clean, more economical
coal-based alternative energy, and moves the industry into a new
development phase. Further, the decision to lower the tax is expected to
have a favorable impact on New Oriental's bottom line in the remaining
three quarters of fiscal year 2009 which began on April 1, 2008.

Increased Push to Replace Diesel with DME

Mr. Chen Si Qiang, CEO and Chairman of the Board of New Oriental Energy &
Chemical Corp., commented, "The government's decision reflects the current
energy situation in China characterized by continually rising international
oil prices, significant air pollution problems and the seeming imbalance in
the Chinese refined oil supply between petrol and diesel fuel and the
serious shortage of diesel oil resources. Given China's plentiful supply
of coal, the only way out is to push harder on the development of
coal-based alternative clean energy and ether products. The most realistic
way this will move forward is to replace the usage of diesel with
coal-based DME utilizing the advanced technology available to accomplish
this. Clearly, the reduction in the DME VAT further advances the
development of this industry. Additionally, the reduction can be expected
to improve our gross margins on DME production in the remaining quarters of
the year in proportion to the decrease in the tax."

About New Oriental Energy & Chemical Corp.

New Oriental Energy & Chemical Corp. which recently upgraded its US listing
to the NASDAQ Global Market (NASDAQ: NOEC), is an emerging alternative fuel
and specialty chemical manufacturer based in Henan Province, China. The
Company is focused on the production of Dimethyl ether (DME), methanol and
fertilizer products. The Company sells its products primarily through a
network of distribution partners. Additional information on the Company is
available on its website at www.neworientalenergy.com.

Safe Harbor Statement

This press release may contain forward-looking statements concerning New
Oriental Energy & Chemical Corp. The actual results may differ materially
depending on a number of risk factors including, but not limited to, the
following: general economic and business conditions, development, shipment,
market acceptance, additional competition from existing and new
competitors, changes in technology or product techniques, and various other
factors beyond its control. All forward-looking statements are expressly
qualified in their entirety by this Cautionary Statement and the risk
factors detailed in the Company's reports filed with the Securities and
Exchange Commission. New Oriental Energy & Chemical Corp. undertakes no
duty to revise or update any forward-looking statements to reflect events
or circumstances after the date of this release.